Deconstructing trading slang

Have you ever bought an odd lot of cable after a dead cat bounce? Do you know the difference between a narwhal and a unicorn?

IG Analyst

2017-11-29T11:23:00+0000

Source: Bloomberg

The money business possibly uses more acronyms and jargon than any other industry – just take a look at our glossary to get a sense of the sheer volume of formal terms. But slang is also prevalent, allowing traders to quickly – and often humorously – convey meaning in an environment where a winning trade can turn into a heavy loss in the blink of an eye.

While it may be helpful for experienced traders and analysts, trading slang can be a difficult second language for hobbyists or newbies to pick up. So what are some of the key slang terms you need to know?

Trading slang A—Z

All the boats rise

The tendency for stocks to rise together, sometimes due to over-optimism.

The cryptocurrency token ether, which is sometimes described as the ‘gas’ of the Ethereum network because small quantities are ‘burnt’ (destroyed) when transactions are processed.

Greenback

The US dollar (USD). This nickname stems from the notes issued during the American civil war, which had a green underside.

Geppy/guppy

Another alternative for GBP/JPY. Other names include beast, dragon, gopher and widow maker.

Gopher

GBP/JPY or USD/JPY. Other names for GBP/JPY include beast, dragon, geppy and widow maker.

Hodl

Holding cryptocurrency despite massive losses or gains, in the hope it will regain its value or continue to increase. The term traces its origin to a 2013 post on the bitcoin talk forum, in which a user accidently mixed up the last two letters of ‘hold’.

Jigged out

When a market turns against a general trend, forcing the trader to close their position.

Kiwi

The New Zealand dollar (NZD), because the national symbol of New Zealand is the kiwi bird.

Loonie

A Canadian dollar (CAD). So called because Canadian dollar coins feature an image of a loon bird. Also sometimes used to refer to the USD/CAD pair.

Matie

AUD/USD. Presumably referencing the stereotype that Australians often call their friends ‘mate’.

Mine/yours

Traders will sometimes say ‘mine’ to indicate they want to buy (go long), and ‘yours’ to indicate they want to sell (go short).

Mining

The computationally-intense process by which new information is verified and added to the blockchain, often rewarded with cryptocurrency tokens.

Narwhal

A Canadian unicorn.

Ninja

A name for USD/JPY.

Nokkie

The Norwegian krone (NOK).

Odd lot

A trade where the position size is less than the standard lot.

Old lady

The Bank of England (BoE). The BoE is sometimes called 'the old lady of Threadneedle Street', where it has been based since 1734.

Ozzie

An alternative spelling of aussie.

Permabear

A trader with a long-term negative view of a market. See also bear and permabull.

Permabull

A trader with a long-term positive view of a market. See also bull and permabear.

Prince Charles

A lot worth twelve contracts. Derived from ‘one doz’ (meaning ‘dozen’), which sounds like ‘one does’, a phrase sometimes uttered by the Prince of Wales.

Pump and dump

The illegal practice of encouraging investors to buy stock, then selling once the price has risen (to the investors’ detriment).

Rubber band effect

Another term for a dead cat bounce.

Satoshi (Sat)

The smallest divisible unit of a bitcoin, equivalent to 0.00000001 BTC. Named after Satoshi Nakamoto, the pseudonym used by the mysterious person or group that originally created bitcoin.

A con-artist who gives a misleading endorsement to a market or asset in the hopes its price will rise (to their benefit).

Short squeeze

A situation where those holding short positions on a market are forced to close their trades as its price increases rapidly.

Squiggly lines

The chart analysis tools and technical indicators used by some traders.

Stokkie/Stocky

The Swedish krona (SEK). Named after the nation’s capital: Stockholm.

Swissy

The Swiss franc (CHF).

Tanking

When a market falls suddenly.

Tenbagger

An investment that rises to 10 times its purchase price (or has the potential to do so).

Texas tea

Another name for oil, one that references its abundance in Texas.

The funds

USD/CAD. Origins unknown.

Token

A unit of cryptocurrency (e.g. bitcoin or ether). Tokens can actually represent any potential use of blockchain technology. This could be a digital right (e.g. intellectual property), share, means of accounting, or other form of reward.

Unicorn

A start-up company that has received a valuation of $1 billion or more. The name references the fact that successful startups, like unicorns, are exceptionally rare. See also narwhal.

Vulture

A trader that looks for struggling assets, hoping to profit from major turnarounds. See also bottom fishing.

Whale

A trader or institution with a large position in a market. Sometimes whales are so big they can influence market pricing.

Widow maker

Another name for GBP/JPY. Other names include beast, dragon, geppy and gopher.

Zone of resistance

The area between current support and resistance levels in which the price typically begins to resist further price rises, and may begin to fall.

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